Is Firm Performance and Corporate Governance Influenced by Ownership Patterns? - A Study with Reference to Firm Life Cycles PDF Download
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Author: Srividhya Raju Sridharan
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
The paper examines the impact of ownership patterns combined with firm life cycle stages on firm performance in the Indian context. The appropriateness of using a proxy derived from cash flow patterns to identify a firm's life cycle stage is tested and verified. Using time series cross-sectional data from the emerging Indian market, the paper adopts parametric and nonparametric tests to explore the relationship between ownership patterns, firm life cycle stages and firm performance. It also tests the impact of these variables on corporate governance practices. The results imply that optimal performance is obtained at the introductory stage when a firm is closely held at growth and maturity stages by foreign-held firms and at decline and shake out stages by government-held firms. Corporate governance practices are best in mature firms and government-held firms.
Author: Srividhya Raju Sridharan
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
The paper examines the impact of ownership patterns combined with firm life cycle stages on firm performance in the Indian context. The appropriateness of using a proxy derived from cash flow patterns to identify a firm's life cycle stage is tested and verified. Using time series cross-sectional data from the emerging Indian market, the paper adopts parametric and nonparametric tests to explore the relationship between ownership patterns, firm life cycle stages and firm performance. It also tests the impact of these variables on corporate governance practices. The results imply that optimal performance is obtained at the introductory stage when a firm is closely held at growth and maturity stages by foreign-held firms and at decline and shake out stages by government-held firms. Corporate governance practices are best in mature firms and government-held firms.
Author: Hoang N. Pham
Publisher: Routledge
ISBN: 1000540278
Category : Business & Economics
Languages : en
Pages : 190
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Book Description
The relationship between ownership structure and firm performance has been studied extensively in corporate finance and corporate governance literature. Nevertheless, the mediation (path) analysis to examine the issue can be adopted as a new approach to explain why and how ownership structure is related to firm performance and vice versa. This approach calls for full recognition of the roles of agency costs and corporate risk-taking as essential mediating variables in the bi-directional and mediated relationship between ownership structure and firm performance. Based on the agency theory, corporate risk management theory and accounting for the dynamic endogeneity in the ownership–performance relationship, this book develops two-mediator mediation models, including recursive and non-recursive mediation models, to investigate the ownership structure–firm performance relationship. It is demonstrated that agency costs and corporate risk-taking are the ‘missing links’ in the ownership structure–firm performance relationship. Hence, this book brings into attention the mediation and dynamic approach to this issue and enhances the knowledge of the mechanisms for improving firm’s financial performance. This book will be of interest to corporate finance, management and economics researchers and policy makers. Post-graduate research students in corporate governance and corporate finance will also find this book beneficial to the application of econometrics into multi-dimensional and complex issues of the firm, including ownership structure, agency problems, corporate risk management and financial performance.
Author: Michael J. Rubach
Publisher: Routledge
ISBN: 1000525007
Category : Business & Economics
Languages : en
Pages : 200
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Book Description
First Published in 2000. This book examines the shareholder activism of institutional investors and the effect of shareholder activism on portfolio performance. Institutional shareholder activism includes both traditional mechanisms of influence (e.g., filing shareholder proposals) and relationship investing (e.g., long-term interorganizational contacts between owners and a corporation’s top managers).
Author: Christian Funke
Publisher: GRIN Verlag
ISBN: 3867469660
Category : Business & Economics
Languages : en
Pages : 105
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Book Description
Diploma Thesis from the year 2004 in the subject Business economics - Business Management, Corporate Governance, grade: 1.1, European Business School - International University Schloß Reichartshausen Oestrich-Winkel, language: English, abstract: Empirische Diplomarbeit die mit einer multivariaten Regression untersucht, ob sich die beobachtete Variabilität der Kapitalstrukturen von Unternehmen durch unterschiedliche Eigentümerstrukturen erklären lässt.
Author: Anastasia Stepanova
Publisher:
ISBN:
Category :
Languages : en
Pages : 25
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Book Description
In this article, we consider the relation between capital structure, corporate governance, ownership structure and performance of a company depending on its life cycle stages. The central aim of this study is to define the most sustainable and effective types of financial architecture by using the cluster and regression analysis. This study describes the three stages of the life cycle of a company: the first stage is growth, followed by maturity and finally the stage of decline, but for our research we only examine companies in the maturity stage. The research includes 11 countries from emerging markets and the primary sample includes 4,675 non-financial companies from 2011 to 2015. As the measure of a company's performance, we used Tobin's Q coefficient and total shareholder return. The primary sample was divided into the 3 life cycle stages by using the approach of comparing the growth rates of revenues at the average rate of revenue growth in the industry (Cao, 2010); however, we did not consider the earlier stages of the life cycle due to the specificity of the sample. A cluster analysis was performed on the sample for the growth and maturity stages in order to show the difference between the clusters that depends on the life cycle stages. We analyzed the clusters' sustainability by regression analysis in each cluster. We described the influence of the financial architecture component on market performance. The results indicate more than one sustainable cluster and demonstrate the influence of the ownership structure, capital structure and the board characteristics on the company's efficiency depending on the stage of the life cycle, which proves there is a need to take into account the issues of the life cycle. The managers and directors of a company can use results of this study when developing a company's strategy, especially during the transition period from one life cycle to another.
Author: Jayesh Kumar
Publisher:
ISBN:
Category :
Languages : en
Pages : 45
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Book Description
Corporate Governance deals with the issue of how the suppliers of finance to various corporations assure themselves of getting a return on their investment. Several Studies have examined the relationship between ownership structure and firm performance. Using different data samples from different countries, most of the studies provide evidence that ownership in uence firm performance. This study examines empirically the effects of ownership structure on the firm performance for a panel of Indian corporate firms, from an 'agency perspective'. We examine the effect of interactions between corporate, foreign, institutional, and managerial ownership on firm performance. Using panel data framework, we show that a large fraction of cross-sectional variation, in firm performance, found in several studies, can be explained by unobserved firm heterogeneity. We also provide some evidence that the shareholding by institutional investors and managers affect firm performance, after controlling for observed firm characteristics and unobserved firm heterogeneity and the effect is non-linear.
Author: Vedat Mizrahi
Publisher: LAP Lambert Academic Publishing
ISBN: 9783845431871
Category :
Languages : en
Pages : 132
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Book Description
Do corporate governance practices affect firm performance? Are shareholders willing to pay a premium for higher governance standards? How does the ownership structure of a firm affect its corporate governance practices and firm performance? This book investigates whether differences in the quality of firm-level corporate governance affects firm performance. Constructing a broad corporate governance index for listed Turkish companies, it is documented that there is a positive relationship between governance scores and Tobin's Q as a measure for firm performance. Firms with better corporate governance scores in the model used in this book have higher firm values, which implies that firms can increase shareholder value by restructuring their corporate governance standards. The analysis also sheds light on the impact of ownership structure on stock performance. Listed companies withhigher corporate governance scores and higher foreign ownership ratios experienced a smaller reduction in their share prices during the equity market crash in Turkey parallel to the global equity markets between 2008 and 2009.
Author: Jayesh Kumar
Publisher: Independently Published
ISBN: 9781709549304
Category :
Languages : en
Pages : 116
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Book Description
This MPhil thesis examines whether the corporate governance framework (ownership structure) influence the firm performance and dividends payout policy. We consider the effect of interactions between corporate, foreign, institutional, and managerial ownership on the firm performance and profits payout policy for an unbalanced panel of 2478 Indian corporate firms over 1994 to 2000.We find that after controlling for observed firm characteristics and unobserved firm heterogeneity, using a fixed-effects panel data framework, the shareholding by institutional investors and directors affects firm performance. We also find that the equity ownership by dominant group influences firm-performance only in case of managerial ownership. We find no evidence in favor of the endogeneity of ownership structure. Unobserved firm heterogeneity is found to be significant. We also find that the ownership by foreign and corporates does not influence firm performance.In analyzing the dividends payout behavior, we suggest an empirical model explain the dividend payout behavior, with the help of a firm's financial structure and investment opportunities along with dividends, earnings, and ownership structure. Using a fixed-effects panel data approach, we find evidence of dividends' dependence on past dividends. Ownership by the corporate and directors is positively related to profits payout in level, and corporate ownership is negatively related in its square. Institutional ownership has an inverse effect on dividends in comparison to corporate ownership in standards as well as in its squares.We find no evidence in favor of an association between foreign ownership and dividend payout growth. We also find support for the hypothesis of a positive association between dividends and past earnings. Debt equity is found to be negatively associated, whereas recent investment opportunities are positively associated with dividends payout. We do not find evidence of the tax or group affiliation effect on payout policy.
Author: Wen-Yi Chen
Publisher: Frontiers Media SA
ISBN: 2889742717
Category : Medical
Languages : en
Pages : 442
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Book Description
Author: Ronghui Zhang
Publisher: Logos Verlag Berlin
ISBN: 9783832511425
Category : Corporate governance
Languages : en
Pages : 0
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Book Description
The book suggests that th ...
